Republic Airways Holdings Inc. late Wednesday reported higher revenue on improved performance of its Frontier Airlines service.
Fourth-quarter revenue increased 7.4 percent over the same period of 2010, to $697.8 million, primarily due to an 11-percent increase from the company's Frontier unit.
Indianapolis-based Republic, however, lost more than $123 million in the quarter, due to charges related to removing certain aircraft from flight operations. Republic took non-cash impairment charges of $191.1 million, or $4.5 million to $5 million per plane, to remove 42 ERJ aircraft it owns out of branded flight operations.
It also took a charge of $24 million to write off prepaid maintenance reserves related to the early termination of Airbus aircraft to its lessors.
When using generally accepted accounting principles, Republic Airways reported a fourth-quarter loss of $2.55 per share, compared with a 3-cent loss in the same period in 2010.
Fuel costs rose to $164.4 million, a 27.3-percent per-gallon increase in price.
Republic flew 4 million passengers in the quarter, a 5.4-percent decrease from the same period in 2010.
For the year, Republic lost $151.8 million, or $3.14 per share, compared with $13.8 million, or 38 cents per share, in 2010. Revenue climbed 7.9 percent, to nearly $2.9 billion.
Republic shares rose 10 cents in early trading Thursday, to $5.41 per share.